Finding a property in Spain advertised for €275,000 is one thing. Knowing how much money you actually need to complete the purchase safely is quite another.
In addition to the purchase price, Dutch buyers must budget for Spanish property purchase taxes, legal advice, notary fees, Land Registry registration and potentially financing or translation costs. Some taxes also vary between autonomous communities, and there can be a significant financial difference between buying a resale property and a new-build home.
Rather than asking "What property can I afford?", it is better to ask "What is my total purchase budget, including taxes, professional fees and a financial reserve?"
Casa de Bas helps Dutch buyers understand these costs in advance through its property buying support service in Spain, so the financial and legal requirements are clear before a property is reserved.
What Costs Do You Pay When Buying a House in Spain?
There is no reliable universal percentage that can be applied to every property purchase in Spain.
The final costs depend on factors including:
- Whether you are buying a resale or new-build property
- The autonomous community where the property is located
- The property's value and tax treatment
- The legal work required
- Whether you are financing the purchase with a mortgage
- Whether documents need to be translated, legalised or apostilled
- Whether a technical survey or additional checks are needed
Your purchase budget must therefore cover more than the asking price and taxes alone.
| Cost | Resale Property | New-Build Property |
|---|---|---|
| Purchase tax | Regional ITP | Generally 10% VAT plus applicable AJD |
| Legal advice | Depends on the lawyer and work involved | Depends on the lawyer, development and work required |
| Notary | Based on regulated fees and the actual deed | Based on regulated fees and the actual deed |
| Land Registry | Depends on the registration | Depends on the registration |
| Other expenses | For example, NIE, translations, power of attorney, valuation or technical survey | For example, NIE, translations, power of attorney, mortgage valuation and additional checks |
Always request a cost breakdown based on the specific property and transaction, rather than relying on a general percentage found online.
Property Transfer Tax on Resale Homes: ITP
If you buy a resale property, regional Property Transfer Tax (Impuesto de Transmisiones Patrimoniales or ITP) is usually one of the largest additional expenses.
The current general rates differ between the regions where Casa de Bas regularly assists Dutch buyers.
| Region | Example Area | Current General Rate |
|---|---|---|
| Andalusia | Costa del Sol | General ITP rate of 7% |
| Valencian Community | Costa Blanca | General rate of 9% for many standard transactions |
As this guide is intended for 2027, the applicable rates must be checked again when you actually purchase. Regional tax legislation can change, and special or reduced rates may apply depending on the buyer or property.
Still deciding which coastline best suits your budget? Compare the Northern Costa Blanca, Southern Costa Blanca and Costa del Sol.
A Practical Example Using Current Casa de Bas Properties
A practical example shows why location can make a financial difference.
Casa de Bas currently lists a two-bedroom apartment in Torrevieja on the Costa Blanca within its available property portfolio.
When a property in the Valencian Community is treated as a resale home for tax purposes and the general rate applies, you must include the applicable ITP before deciding how much of your total budget can go towards the purchase price.
By comparison, Casa de Bas also currently lists a two-bedroom apartment in Benalmádena. A standard resale transaction in Andalusia is currently subject to a different general ITP rate.
These examples demonstrate why two properties with similar asking prices do not necessarily require the same total purchase budget.
Important: Property prices and availability may change. Your lawyer or tax adviser must also confirm the tax treatment of your specific transaction.
New Builds: VAT and AJD Instead of ITP
Tax treatment is different for a qualifying first sale of a new residential property.
Instead of ITP, you generally pay 10% VAT (IVA) on the property, together with the applicable regional AJD (Stamp Duty).
When comparing new-build and resale homes, you should therefore look beyond the asking price. Always compare the total acquisition costs.
Casa de Bas has a dedicated selection of new-build developments in Spain. One example is O-Porto Beach in Torre de la Horadada on the Costa Blanca.
Before reserving, have the applicable taxes for the individual development confirmed, together with the dates when the various payments are due.
Advance Payments on New Builds: Check the Guarantee
When buying a new-build property, payments are often made before construction has been fully completed.
For advance payments covered by the applicable statutory protection, the developer must secure repayment through an appropriate bank guarantee or insurance in accordance with the relevant requirements.
Before paying, your lawyer should check:
- Which account you must pay into
- Which guarantee protects the payment
- What amount is covered by the guarantee
- How long the guarantee remains valid
- What happens if the development is not completed as agreed
- Whether the contract is consistent with the guarantee issued
Do not treat a bank guarantee as simply another standard purchasing expense of a few hundred euros. The important point is that your advance payments are legally protected correctly.
How Much Does a Notary Cost in Spain?
Notary fees in Spain are regulated. However, the final bill depends on the deed and the work involved, meaning that quoting a single fixed amount for every property can be misleading.
The notary also has a different role from what many Dutch buyers may expect.
The notary performs an important formal and legal function in the public deed of sale, but does not replace your independent lawyer, who checks the transaction, ownership position, contracts and relevant documentation before completion.
Legal Fees: Ask What Is Included in Advance
An independent lawyer is not the same as a notary and performs a different role in a Spanish property purchase.
The lawyer may check:
- Who the registered owner is
- Whether mortgages, attachments or other charges exist
- The legal status of alterations and extensions
- IBI and other relevant liabilities
- The owners' community position
- Purchase and reservation agreements
- New-build documentation and guarantees where relevant
- The tax treatment of the transaction
Lawyers use different fee structures. Some charge a percentage, others provide a fixed quotation, while some combine the two approaches.
Before instructing a lawyer, request written confirmation of which services, taxes and any applicable VAT are included in the quotation.
As part of its property buying support, Casa de Bas coordinates legal matters with its Dutch-speaking network in Spain.
Land Registry Fees
Following completion, the ownership title is normally registered with Spain's Registro de la Propiedad (Land Registry).
These costs are not identical for every property. They depend on the particular registration and the applicable regulated fees.
Avoid online budgets that quote one fixed amount for every purchase. Ask your lawyer or gestor for an estimate based on your specific transaction.
Valor de Referencia: Why Relying Only on the Purchase Price Can Be Risky
For resale properties, Spain's valor de referencia (cadastral reference value) may be relevant when determining the tax base for the transaction.
This means you cannot automatically assume that the agreed purchase price will always be the only value used to calculate ITP.
Before purchasing, have the following checked:
- Whether a valor de referencia exists for the property
- Which value is used as the tax base
- Which regional rules apply
- Whether special circumstances are relevant to your transaction
This is particularly important when a property is advertised at a noticeably lower price than comparable homes in the same area.
What Other Smaller Costs Might Apply?
In addition to tax and legal services, other expenses may arise depending on your purchase.
NIE
Foreign buyers normally need an NIE for the purchase and related Spanish tax procedures. If a lawyer or another representative arranges the application on your behalf, a service fee may apply in addition to the official charges.
Translations and Apostille
Foreign documents may need to be translated, legalised or apostilled in certain circumstances. The cost depends on the document and the procedure required.
Technical Survey
For older homes, villas, fincas or properties with visible alterations, a technical survey may be advisable. Legal due diligence and a structural or technical inspection address different questions.
Mortgage Valuation
If you are arranging financing, a formal valuation may be required. Ask the bank or mortgage adviser in advance which costs you must pay as the borrower.
Do Not Forget the Costs After Completion
Your total budget does not end at the notary's office.
After buying, you may have to pay for:
- IBI, the municipal property tax
- Community fees for apartments and residential developments
- Property insurance
- Electricity, water and internet
- Maintenance and repairs
- Swimming pool and garden maintenance for villas
- Any applicable Spanish tax obligations for non-residents
For a more detailed breakdown, read Casa de Bas's guide to the actual annual costs of owning a property in Spain.
Common Mistakes When Calculating Property Buying Costs
Using One Percentage for the Whole of Spain
ITP and AJD are regional taxes. A calculation for the Costa del Sol cannot automatically be applied to a property on the Costa Blanca.
Using Only the Asking Price as Your Budget
A property priced at €300,000 requires more than €300,000 in available funds if you are paying the taxes and other transaction costs yourself.
Relying on Fixed Online Figures for Notary and Registration Fees
Request an estimate for the actual transaction rather than using a generic amount.
Treating Legal Advice as Optional Administration
A lawyer checks matters that cannot be established from photographs, a sales brochure or a property viewing.
Making New-Build Advance Payments Without Checking the Guarantee
Have the protection of advance payments assessed before transferring money.
Forgetting Annual Ownership Expenses
The cheapest property to buy is not necessarily the cheapest to own over five or ten years.
How Casa de Bas Helps Buyers Understand Their Total Costs
Casa de Bas does more than help Dutch buyers find a property. Through its Secure Purchase Plan, the buying process is structured from the initial search through to receiving the keys.
As part of its property buying support and Secure Purchase Plan, Casa de Bas coordinates with its Dutch-speaking network of legal and financial professionals in Spain.
This helps establish, before you take on a financial commitment:
- Which purchase tax applies
- Which legal checks are needed
- What professional fees to expect
- Which documents must be arranged
- How much money must be available and when
- Which recurring costs remain after completion
This allows you to assess a property based not only on its asking price but also on its overall financial implications.
Frequently Asked Questions About Property Buying Costs in Spain
How Much Should I Budget for Property Buying Costs in Spain?
There is no percentage that applies to every purchase. The main differences arise from the property type, regional taxes and professional services needed for your transaction. Have an individual cost calculation prepared before making a reservation.
What Tax Do I Pay on a Resale Property?
You generally pay regional ITP on a resale purchase. The standard rate varies between autonomous communities. For a purchase in 2027, the rate must be checked again at the time of the transaction.
What Tax Do I Pay on a New-Build Property?
A qualifying first sale of a new residential property is generally subject to 10% VAT. Regional AJD may also be payable.
Is a Lawyer Compulsory?
A lawyer is not legally compulsory for every property purchase in Spain, but independent legal advice is strongly recommended. A lawyer carries out checks that are not simply replaced by the notary or estate agent.
Who Checks My New-Build Payments?
Have your lawyer check that advance payments are made into the correct account and properly protected by the required bank guarantee or insurance.
Where Can I Compare Current Spanish Properties?
Browse current properties for sale in Spain or compare new-build developments in Spain.
Calculate the Total Purchase Cost Before Setting Your Maximum Property Price
One of the biggest financial mistakes is searching for a property up to the maximum amount shown in your bank account or mortgage offer.
Start the other way round.
First, decide how much money you want to spend on the purchase in total. Then deduct the applicable taxes, legal and professional costs, and a realistic contingency fund. The remaining amount provides a much better basis for setting your maximum property price.
Want to know which properties fit your total budget? Explore current properties for sale in Spain.
Looking specifically for a new home? Browse current new-build developments.
Want to discuss the costs and buying process first? Arrange a no-obligation consultation with Casa de Bas.
Prefer to call directly?
